DUBAI: The Ministry of Labor yesterday passed a law regulating the laying off of UAE nationals in the private sector. Emiratis in the sector cannot be terminated from service for minor reasons and in order to terminate them, the employer should prove that the worker or workers are inefficient and have violated labor laws, the rule said.
Any company that plans to make Emiratis redundant must have the decision approved by the ministry first. Such a move would only be allowed if the company could prove it had made all possible efforts to keep the national or nationals employed.
In a related development, 20 UAE nationals who were laid off are considering filing a lawsuit for compensation against their former employer, the Al Futtaim Group, if the Ministry of Labor fails to resolve the issue. They filed a complaint with the ministry for “arbitrary termination.” The Al-Futtaim Group said it had laid off the Emiratis due “to the restructuring of the company in the light of the current global financial crisis.”
Unemployment among Gulf nationals is expected to rise after years of decline due to the impact of the global economic crisis.
Fiscal constraints will likely prevent governments from creating jobs for new entrants into the labor market.
